The private equity owner of The Body Shop paid £3.5m upfront for the vegan beauty chain before it collapsed into administration.

According to The Telegraph, Aurelius handed over the small sum of cash to the retailer’s former owner Natura despite agreeing to a £207m deal.

The shortfall comes largely from a £90m performance-based payment that the firm was set to pay over the next five years – an unlikely payment given the chain was placed into administration in February.

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The Body Shop’s collapse has raised questions over how much Brazilian beauty giant Natura will receive beyond the £3.5m it was paid.

This is likely to add further tensions between the two parties, after Aurelius was criticised for failing to pay millions of pounds that was promised to around 30 further employees.

The £207m sale price was the enterprise value of The Body Shop, with the deal stipulating that debts would be taken on by Aurelius through the takeover. As such, the firm is not obliged to pay that sum in full to Natura.

The revelation fuels further speculation over the condition of The Body Shop and terms of the sale given the beauty chain was placed into administration just three months after its ownership changed, resulting in hundreds of job losses and store closures.

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